Suppose the demand for good x is ln Qxd = 21 ? 0.8 ln Px ? 1.6 ln Py + 6.2 ln M + 0.4 ln Ax. Then we know that the own price elasticity for good x is:

A. inelastic.
B. elastic.
C. unitary.
D. It cannot be calculated from the existing information.


Answer: A

Economics

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